Posted on Thu, Sep 02, 2010 @ 07:06 AM
Our last post - A Simple Guide to OSHA 300, should have served as a bit of a kick in the pants to those struggling with OSHA 300 record keeping. Hopefully this helped to clear the air of some confusion and things are back on track. If you haven't had a chance to read it yet, check it out to make sure you're doing everything you need to be doing. This post should help to clear up the rest.
In the previous post we told you what injuries are considered to be work-related. This post will help clarify what injuries are NOT work-related (if you have concerns after reading, please Contact Us for clarification), which is a question we get quite often in terms of OSHA filing.
So here is a list of items that are NOT considered medical treatments and are NOT recordable:
- visits to a doctor or health care professional solely for observation or counseling
- diagnostic procedures, including administering prescription medications that are used solely for diagnostic purposes; and any procedure that can be labeled first aid.
- using non-prescription medications at nonprescription strength;
- administering tetanus immunizations;
- cleaning, flushing, or soaking wounds on the skin surface;
- using wound coverings, such as bandages, BandAids™, gauze pads, etc., or using SteriStrips™ or butterfly bandages.
- using hot or cold therapy;
- using any totally non-rigid means of support, such as elastic bandages, wraps, non-rigid back belts, etc.;
- using temporary immobilization devices while transporting an accident victim (splints, slings, neck collars, or back boards).
- drilling a fingernail or toenail to relieve pressure, or draining fluids from blisters;
- using eye patches;
- using simple irrigation or a cotton swab to remove foreign bodies not embedded in or adhered to the eye;
- using irrigation, tweezers, cotton swab or other simple means to remove splinters or foreign material from areas other than the eye;
- using finger guards;
- using massages;
- drinking fluids to relieve heat stress
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IMPORTANT: Did you know that if you are supervising the work of temporary workers and contract workers, you have to record injuries and illnesses just the same as any other worker on your payroll? If you have hired temporary workers through a temp agency and you are supervising their work, they must be listed on your OSHA 300, regardless of whose workers’ compensation insurance covers them.
If the contractor's employee is under the day-to-day supervision of the contractor, the contractor is responsible for recording the injury or illness. If you supervise the contracted employee's work on a day-to-day basis, you must record the injury or illness. This is very important to proper filing.
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What data goes on the summary?
The summary log is fairly self-explanatory. You enter the individual’s name, specifics regarding the injury, whether there was lost or restricted time, etc. When you are entering the data, it’s important to be thorough and concise. However, one thing to consider that many individuals often neglect is that you do have the right, and the obligation, to omit employee names if the injury is of a sensitive nature.
For instance, if the injury involves an intimate body part, the reproductive system, sexual assault, pregnancy, HIV, needlestick infections, contagious disease, or mental illness, you can and should omit the individual’s name and instead list it as a “private case”.
Also, don’t forget to complete all of the company specific data, including the employee averages and hour totals for the year.
What if the data for the injury changes?
If the outcome or extent of an injury or illness changes after you have recorded the case, simply draw a line through the original entry. Then write the new entry where it belongs. Remember, you need to record the most serious outcome for each case, but you only need one entry for each case.
The reports are done. Now what?
This form must be posted every year from February 1 to April 30.
The summary must be reviewed and certified by a company executive – such as the owner, an officer , or the highest ranking company official at that site. You do not have to send the forms to OSHA unless OSHA has requested you to do so.
You must keep OSHA log and summary recordkeeping forms for five years following the year the year to which they pertain.
Now, where can you get these forms?
The easiest answer yet. OSHA’s website (http://www.osha.gov/recordkeeping/RKforms.html) provides these forms in both a PDF printable version and in an Excel spreadsheet. With the spreadsheet, you really have no good excuse to not get yours posted quickly (and neatly!).
So if you're behind follow the guidelines in these two posts and get this nagging task off of your shoulders. Believe me,you'll sleep a lot better at night knowing it's under control.
OSHA 300 filing can be a tedious task. If you need assistance classifying your injuries give us a call before filing time comes any closer. We'll make sure you are doing things correctly.
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Posted on Tue, Aug 31, 2010 @ 07:04 AM
Yes, it's a few months until most are going to start thinking about OSHA 300, but just to make sure no one is falling behind out there (there are always many who are) and just to make sure you are tracking correctly, this post will cover some quick and easy OSHA 300 guidelines to make sure you'll be doing things correctly when the time comes. We always say be proactive to avoid future problems.
Here's a Quick and Simple Guide to OSHA 300
In a nutshell all you have to do to ensure this is done correctly is make a list of your OSHA recordable injuries in the previous year, add up some totals, make a summary sheet, and tape it to a wall.
And actually, if you’ve been good, you’ve been keeping your OSHA 300 list all year long and now you just need to do your summary - the 300a. But if you're in the majority of folks out there, you've let this one sit on the back burner. It's ok. No need to panic. Just pull together all of your First Reports of Injury and get busy. Don’t have your First Reports of Injury? Then this blog isn't going to help much. Contact Us, and we'll help make your life simpler.
First things first
Do you need to complete the form?
Maybe not. If you had 10 or fewer employees during all of the calendar year or your business is classified in a specific low-hazard retail, service, finance, insurance, or real estate industry, you do not have to keep injury and illness records unless the Bureau of Labor Statistics or OSHA informs you in writing that you must do so.
Here is a link to OSHA’s website which lists the industries exempt from recordkeeping: http://www.osha.gov/recordkeeping/ppt1/RK1exempttable.html .
(Remember, though, that all employers covered by the Occupational Safety and Health Act of 1970 (P.L. 91-596) must report to OSHA any workplace incident resulting in a fatality or the in-patient hospitalization of three or more employees within 8 hours.
Now, which illnesses and injuries go on the 300?
That one is a bit more tricky. Not every First Report of Injury (the OSHA 301 for, or equivalent) that is completed must go on the OSHA 300 – only those that OSHA considers to be “recordable”.
First, it must be “work–related”: An injury or illness is considered work-related if an event or exposure in the work environment caused or contributed to the condition or significantly aggravated a preexisting condition. Work-relatedness is presumed for injuries and illnesses resulting from events or exposures occurring in the workplace, unless an exception specifically applies.
This page on OSHA’s website provides some additional insight if this is still unclear: http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=STANDARDS&p_id=9636
But, not everything work related must be recorded. You must record an illness or injury that is work related AND:
- is diagnosed by physician or other licensed health care professional, or
- is a case involving cancer or a chronic irreversible disease, or
- is a fractured or cracked bone, or
- is a punctured eardrum, or
- is a needlestick injury or cut from a sharp object that is contaminated with another person’s blood or other potentially infectious material, or
- requires an employee to be medically removed under the requirements of an OSHA health standard, or
- is tuberculosis infection as evidenced by a positive skin test or diagnosis by a physician or other licensed health care professional after exposure to a known case of active tuberculosis, or
- includes an employee's hearing test (audiogram) which reveals 1) that the employee has experienced a Standard Threshold Shift (STS) in hearing in one or both ears (averaged at 2000, 3000, and 4000 Hz) and 2) the employee's total hearing level is 25 decibels (dB) or more above audiometric zero ( also averaged at 2000, 3000, and 4000 Hz) in the same ear(s) as the STS, or
- includes medical treatment which involves managing and caring for a patient for the purpose of combating disease or disorder.
I know -- that’s a long and detailed list and you may be clawing your eyes out by now trying to figure out what's what. Some of the items are not that well-defined.
So in a couple of days just to make sure everyone is keeping up with the things that they should be, we're going to post a list of items that are NOT considered medical treatments and are NOT recordable:
Keep an eye out for that one. You'll probably want to print these off if you want to make OSHA 300 time a little bit easier on yourself.
Resources in this post:
(image provided by freedigitalphotos.net)
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Posted on Thu, Aug 26, 2010 @ 07:08 AM
Are You Losing the Unemployment Claims Battle?
It’s probably comes as no surprise that unemployment claims have risen substantially in the past eighteen months, and while hiring rates seem to be increasing gradually, there’s not yet an end in sight as benefits continue to be extended.
Understandably, the number of companies disputing claims are also increasing, as is the number of employers who take the step to appeal and overturn a unemployment benefits award.
However, judging by the relatively low number of claims and appeals being won by the employers, not many are doing a very good job of fighting unemployment claims. Here’s why, and here's how your company can do a better job.
1.) Poor or No Documentation
Many employers fail to realize that the documentation they provide regarding an employee’s work history and termination will be translated as evidence by the unemployment office. Simply put - No documentation = No evidence.
The burden of proof that the employee was fired for cause is on the employer entirely, and they must prove the termination was cause to deny benefits. While it is legal in most states to terminate an employee at will, many employers do not know that termination under at will does not deny an employee their unemployment benefits.
Included in this documentation of employment and termination needs to be verification that the employee was aware of company policies, such as signature of receipt for the employee handbook and other types of internal company training.
Additionally, if an employee is terminated for a violation not outlined in the employee handbook (give that link a look if you're not sure if all of your "policies" are documented), employers are going to have a tough time proving that a violation even took place, especially if the employee was never warned of their behavior.
Around here we like to call these expensive little mishaps "unwritten policies." Here are two extremely helpful blog posts discussing these all too common omissions and why you should avoid them.
If you need help with your employee handbook, drop us a line immediately. This is one of the most important pieces of a properly functioning small business.
2.) The Wrong Representative
Who usually handles the appeals hearings in your company? Hopefully Human Resources or an HR representative is speaking on behalf of the employer during the hearings, as it should be.
These hearings are defined by protocol and it’s important that the employer side be led by a highly experienced professional, such as the Certified HR Professionals at Integrity HR (yes, we provide this service to our clients). However, that usually is not enough.
Unless the representative witnessed first-hand the behavior that led to termination, it can be perceived as hearsay. Sure, it’s professional hearsay if HR is speaking regarding what the supervisor told them or even documented, but the hearing officer will need to hear it straight from the supervisor’s mouth for it to hold much weight.
The same is true for anyone who witnessed the behavior that led to termination – or who can attest to the employer’s consistent application of the policy in question. Having these witnesses available to provide personal testimony is key and employers must often determine if they want to invest the time to pull them away from their duties in order to participate, or if they want to risk the validity of their appeal.
If a witness absolutely cannot be present, a signed and sworn statement from the witness may be substituted (considering, of course, it is provided to the hearing officer and the claimant as required in advance of the hearing)
3.) Inaccurate Reason for Termination
This all comes down to why the employee was terminated. If the employee is terminated for attendance, this is what they are told, and this is what is provided in the unemployment fact finding interview, then that is what will be considered. Employers cannot be at the appeals stage and then add that performance was an issue, or attitude, or productivity, or anything else that was never before mentioned.
If these reasons apply, they need to be valid reasons from the beginning. No matter how many written warnings an employee may have for attendance, if they are terminated for poor work quality, proof of the poor work quality is going to be what’s required.
Remember, having a lawful reason to terminate an employee does not necessarily mean that that employee will be denied unemployment benefits. While terminating an employee lawfully should be what is of utmost concern, employers who wish to fight and deny unemployment claims must also be able to validate their reasons, and provide evidence to support them.
The Bottom Line:
The cold fact of the matter is that in this current economy with unemployment rates being what they are, odds simply are not in favor of the employer. If employers wish to fight unemployment claims now and moving forward it is up to them to raise those odds with the proper documentation, communication, and representation outlined above.
Resources From This Article:
(image provided by freedigitalphotos.net)
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Posted on Tue, Aug 17, 2010 @ 07:07 AM
So How Do You Motivate Salaried Employees?
A few weeks ago we posted a blog regarding the top myths about salaried personnel and their wages. These posts received a lot of good feedback from managers and employees alike. If you haven't already read them, you may want to take a look before reading today's article.
- But I'm Salaried! - Top 5 Salary Employment Law Myths
- Dealing With Salary Employment Law Myths
One question that was raised as a result of these articles was this. How do you motivate salaried employees? If a management puts it into an employees head that he/she should be at the office from 8 to 5, what is stopping ultra efficient employees (those that can 40 hours of work in 25) from simply being less efficient and dragging out their tasks to "get in their 40 hours."
We posted those articles because this sort of abuse of hours and time off by salaried personnel has become a hot employee relations issue with many of our clients, and we assumed that they were not alone in this.
First, A Word of Caution:
Before taking any of the actions below to motivate salaried employees please note that the implementation of some of the following measures in a formal policy should be reserved for environments in which the time off is abused by salaried personnel. Ideally, it will never get to this point, but it does happen.
In this case, only those with a recognizable problem should receive consequences (discipline). Those who recognize the responsibilities of their position along with the rights will be allowed to continue to work in a matter that best suits them as well as the company.
So how do we get to this ideal state where no one is taking advantage of their status as a salary employee?
1.) Ensure That All Positions and Employees are Properly Classified.
If you have two people in a similar position and one is salaried and one is hourly, there is a definite disconnect and you’re going to have problems.
Without even considering FLSA fines and penalties, the salaried person is going to adopt the work habits of the hourly person. It's just human nature. In at 8 and out at 5, scheduled lunch and break times, no matter what.
If you want salaried employees to behave like salaried employees, make sure they are not treated like hourly employees.
**This brings up an important point about FLSA status regarding fines and penalties. Please see the footnote at the end of this post for more.
2.) Have Good Jobs.
A simple philosophy, sure, but we know that regardless of the monetary rewards available, employees work harder and better in jobs that they enjoy and love (this is why matching interests to positions, something we do with the use of assessments, is so important).
Listen to your employees' suggestions, as well as requests they may make for modified work weeks. Work with them to develop the nature and parameters of their job so that it has an intrinsic value to them and so that they feel that their efforts matter long after the work is done. There’s no job “too small” to have this value – in fact, if the job doesn’t have value, it doesn’t need to exist within a corporation.
3.) Provide Feedback to the Employee.
If an employee isn't meeting company expectations, tell them. Too many times managers are frustrated because an employee is not meeting standards, but fails to address them because they too believe the myths that salaried personnel don’t have to maintain a reasonable workweek (if you find yourself questioning this, read this blog post now!).
To that point, managers need to be educated about what being a salaried employee means. Why? So that they can properly educate their staff. This is especially important for employees as they transition from an hourly position to a salaried position so that they understand requirements and do not rely on what they think it means.
What is the One Thing You Should NEVER Do to Try Motivate Salaried Employees?
DO NOT threaten high performers with discipline if they don’t spend X number of hours in the office each week. Don’t mandate face time if they can’t be productive during that time.
Forcing your employees to spend unnecessary time in the office will kill their morale and will only result in them dragging out their duties to fill the time that you make mandatory. Or they'll just spend the extra time covertly chatting with other employees and surfing the web out of spite.
Some people are much more productive in a home office. If they're being more productive elsewhere, why would you want to change that?
If face time is that big of a deal to you then you must provide the environment for your employees to flourish. Give them rewarding work to do, and then reward them for it.
Bottom Line? Be consistent, educate your employees, provide a rewarding atmosphere, and be open and transparent with expectations. Follow these principles and you'll be on your way to a much more productive salaried workforce.
Resources in this Post:
**Important Note About FLSA - When was the last time you did FLSA exemption testing? If new FLSA standards currently inconsideration are passed, employers will have to provide documentation to all salaried personnel showing evidence of the testing. Otherwise heavy fines and penalties can occur. Give us a call if you need help with this.
(image provided by freedigitalphotos.net)
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Posted on Wed, Aug 11, 2010 @ 07:45 AM
Know Your Affirmative Action Obligations Under Executive Order 11246
This one is for the sake of all of our credit union readers out there, and of course anyone wishing to further their knowledge of the subject of federal compliance. Read this one thoroughly. It could mean avoiding heavy fines and penalties.
Affirmative Action Compliance
Many organizations are required to comply with preparing an Affirmative Action plan as a result of being a federal contractor. What is less commonly known is that Credit Unions can also be considered "federal contractors" as defined by the Office of Federal Compliance and Contracting Programs (OFCCP).
What does this mean for your Credit Union? That's what this article aims to explain.
Background
Executive Order 11246, signed by President Lyndon Baines Johnson (LBJ) in 1965, is a series of regulations that prohibit federal contractors from discrimination on the basis of race, color, religion, sex and national origin. These regulations also require covered federal contractors to take affirmative action in employing minority group members and women, and to develop written affirmative action plans.
Under these regulations, non-construction (service and supply) contractors with 50 or more employees and government contracts of $50,000 or more are required to develop and implement a written affirmative action program (AAP) for each establishment.
What is an Affirmative Action Program?
An Affirmative Action Program is defined as "a set of specific and result-oriented procedures to which a contractor commits itself to apply every good faith effort." Non-compliance with these regulations can result in having contracts cancelled, terminated or suspended, or the contractor may be debarred. Audits are also on the rise for compliance.
So What Does This Mean for Credit Unions?
You might be wondering how this applies to Credit Unions that don't have "contracts" per se with the federal government.
According to the OFCCP, Executive Order 11246 has consistently defined a government contract as any agreement between any contracting agency for the purchase, sale or use of personal property or non-personal services. "Non-personal services" includes, among others, utilities, construction, transportation, research, agreements for insurance, and fund depository.
Financial institutions are covered under this Executive Order as federal contractors when possessing federal share and deposit insurance or are issuing and pay agents for U.S. savings bonds and savings notes. So in short, if a Credit Union has 50 or more employees and is insured by the NCUA with deposits insured through the NCUSIF, it is "covered" and must comply with the Affirmative Action regulations.
So What Happens Now?
If you discover that your Credit Union is covered under Affirmative Action regulations, the first step is to get compliant (otherwise you may face the penalties described earlier). This means providing equal opportunity for applicants and employees based on race, gender, national origin, color and religion.....AND developing a written affirmative action program (AAP), per the guidelines established by the OFCCP.
The AAP identifies those areas in the workforce that reflect under-utilization of women and minorities, or having fewer women or minorities in a particular job group than would reasonably be expected by their availability. Under-utilization is determined through a statistical analysis called a utilization analysis.
Based on this utilization analysis and the availability of qualified individuals, the Credit Union would establish goals to reduce or eliminate the under-utilization through the use of good faith efforts. Good faith efforts may include expanded recruitment efforts, training and other activities to increase the pool of qualified minority and female applicants.
In 2008 alone, the OFCCP collected more than $68 million in fines from employers that were not in compliance, so setting up your process and maintaining it annually is critical to prevent fines and penalties.
For more information on Affirmative Action regulations and what you need to do to comply, visit the OFCCP's website at http://www.dol.gov/ofccp, or contact us at 502.753.0970 for assistance in helping you prepare your Affirmative Action Plan, set up the recordkeeping, and serve as a coach in preparation and guidance in complying with these and other HR related compliance regulations.
Additional Resources:
You may also be interested in these whitepapers on our website.
Handling Comp Time in Kentucky
Supply and Service Contractor Affirmative Action Checklist
(image provided by freedigitalphotos.net)
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Posted on Tue, Aug 03, 2010 @ 07:09 AM
Job Titles Can Effect Productivity
A couple of weeks ago, we blogged about the psychological value of job titles with respect to the importance of establishing proper supervisory roles in the chain of command. There is some good info in there. If you missed it make sure to take a look with the link above.
Today we take a look at the effect that job titles have on human behavior and just how that might (and most likely does) affect the performance of your employees.
Many people hold a large amount of intrinsic value with their job title, which means there is a large likelihood that the name of one's job title and what that title means to them can develop into a self-fulfilling prophecy. This follows another one of Cialdini's Principles of Persuasion called "Consistency." (You’ll note we referenced Authority in the previous job title post).
For example, if you give a person a title like "Assistant" they are very likely to behave in accordance with that title. Now you might say, well if they are an assistant then they should behave like an assistant. True, but what if they're not an assistant at all? What if the job paradigm your company lives by doesn't fit the position anymore? What if this person or position has evolved to the point where they have been given many new responsibilities?
The label assistant no longer fits, and that's a big deal to a lot of people. You see people often identify themselves by their job titles. If they're stuck with a title that denotes something less than they are (or potentially could be), this could be a huge drain on their productivity.
In the above case this person will be more likely to behave like an assistant, and thus holding them back from their potential, until a change is made.
The reverse is also true. Those who are assigned titles like "Manager" "Manager of" "Supervisor" or other titles that denote success and power in their eyes, will feel inherently tied to those roles, will identify with them, and are more likely to behave consistently with them.
Job Titles Must Align With Your Company Culture
Of course there is an issue of title consistency across the organization. You want to be sure that your titles are consistent with the culture of your business as well as your employee handbook policies.
Of course you can't give everyone titles like manager and supervisor. The value of your titles would be deflated in no time. But perhaps you can get creative.
For example Microsoft gives its product demonstrators and promoters the title of "Evangelist." A business contact of mine calls his staff "Support Superstars." Apple calls its staff at its retail locations "Geniuses." You know what I think when I hear those titles? I think to myself, "that must be a cool company culture. Odds are your employees will think the same thing.
Just be careful not to get too creative. Sometimes a cigar is just a cigar after all, right Sigmund? An important point to keep in mind is that your titles must align with your company culture, your chain of command, and your company policies - otherwise they lose their value entirely (don't get stuck in an old paradigm if your policies are out of date).
The point is to think about how your employees might feel about their job titles. Might people in your organization feel better about coming into work every day if they had titles that they were comfortable with, titles that made them feel like they were going somewhere, titles that allow them to feel great about handing over their business card to potential customers?
Don’t get me wrong here. I'm not saying there is anything wrong with traditional job titles, as long as those job titles are used properly. I'm just saying, like Zappos, don't be afraid to get your employees’ input about their job titles at their performance reviews.
What's in a Job Title Takeaways:
Simply this. Recognize the effect that job titles have on your staff. You may have potential rising stars at your company who are stuck with a job title that is de-motivating to them. Maybe they don’t even know it themselves. But think about it. Who might those people be? Get their input.
Job titles have a larger effect on people than you might think.
Resources in this post:
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Posted on Tue, Jul 27, 2010 @ 08:15 AM
Employment Law Q&A
Ok, we're going to try something a little bit different today. The Integrity HR Human Resources Blog has gained quite a following lately, so we'd like to have a little fun with our readers today.
As Certified HR Consultants we have to stay on our toes to ensure that we are always adequately prepared for any HR question that is likely to come our way, and even for those that are not. We'd like to let you in on the fun today.
It's time for a little Employment Law Q&A. See if you can answer this one.
Here's Your Employment Law Question
"You've verified that a candidate is legal to be in the United States. This is sufficient I-9 verification that they may work in the United States. True or False? Why or why not? Be careful. The answer may surprise you."
Make sure to back up your answer thoroughly and then check the box in the comment section to receive notifications of what others have to say.
We're going to be weighing in ourselves on this one, so if you're reading and you know your stuff, let's see what you got!
PS: Unless someone answers it, we've got a follow up question for you after this one so be ready!
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Posted on Wed, Jul 21, 2010 @ 03:16 PM
The Importance of Job Titles:
- "What was your last position called?"
- "Was that an appropriate title?”
These questions are among the many that the hiring managers at Zappos.com, a wildly successful online shoe company, ask of their job candidates. Why in the world do they ask such things? Because they know job titles have a lot larger effect on people than simply determining what pay grade they should be at within the company. There are deep psychological effects that are often difficult to recognize.
Zappos understands that if there is a disconnect between the duties of the person and the job title, that often times a person will not be able to adequately do their job because they are not viewed by others within the company to have the authority to do so.
For example, I can recall an experience when a friend of mine was expected to take on a management role at the same level in the chain of command of those workers who were being overseen, i.e. this person was operating in a management role without being given a management title. What happened was that as hard as this person tried they could not get these employees that had been told to listen... to listen. In this situation there was a disconnect between this person's title, and their responsibilities.
This wasn't an issue lack of management skills. In fact this person was highly successful manager at a previous job. This was an issue of another kind of a authority, the credibility difference that naturally exists between having titles like "Manager" or "Supervisor" and titles like "Coordinator", "Assistant", "Specialist" or whatever the case may be. "Authority" is one of the Six Psychological Principles of Persuasion that Robert Cialdini, a famous Behavioral Psychologist lists in his classic book "Influence." It has large implications in business.
Cialdini recognized that by nature, humans have a higher regard for the direction and input of authority figures (those with the innate credibility of managers, supervisors, bosses, etc.) in the workplace. Humans are literally psychologically programmed to listen to authority. If we do not feel that someone is credible, we are far less likely to listen.
So What's the Lesson?
Be consistent with your job titles. If someone needs to be in a position of authority it is not enough to simply tell his or her future subordinate(s) to listen without issuing a title change. Psychologically this person is still viewed as an equal unless a formal change is made.
That's just the first part of the argument though. There is another very deeply rooted psychological effect that job titles have on people. We'll discuss that in the next post.
Until then, think about those individuals that you could not do without who you trust to maintain order and productivity within your organization. Have they been given the proper authority and tools to do so?
Have you ever encountered a situation like this? Feel free to share your comments.
Resources in this Post:
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Posted on Thu, Jul 08, 2010 @ 11:54 AM
Our last blog posting dealt with the Top 5 Salary Employment Law Myths and gave a bit of insight about each. While some of you probably know that these myths are, in fact, just myths, even an occasional seasoned business professional is guilty of believing a few of these, whether he or she will admit it or not.
If you didn't get a chance to read that, it's a goodie. Check that one out before you read this follow-up post. It might be a good idea to review it anyway.
Know Your Rights as an Employer
Please know that the idea behind these employer’s arguments is not to abuse employees or make them work unreasonable hours. However, they are defenses against employees who believe that because they are “salary” they can come and go as they please without answering to a defined schedule, or who believe that they deserve equal time off for any time they work over 40 hours.
In a reasonable workplace that follows salary employment law, everyone works what is required to get the job done, and those who are required to put in extra time are rewarded (hopefully) for a job well done. Most employers do not want to resort to forcing employees to use PTO (paid time off) – they hope that their employees will recognize when PTO is required and will request it to cover their time.
Keep Proper Policies and Enforce Them
Most employers certainly do not want to resort to docking anyone’s salary for absences – however, the abuse of time off by some salaried exempt employees is forcing their hand. Make sure you've got the proper policies in your employee handbook in place to enforce this if / when it happens (think: is your employee handbook up to date?).
What’s the most simple resolution to this problem? Discipline. It's a word most don't like to use, but discipline is important. Managers need to discipline the abusers so that they are not forced to implement policies that will reduce flexibility for everyone else who puts in their time to get the job done. Not only discipline, but consistent discipline. If you take action against one person, make sure that action is consistent across the organization in order to avoid favoritism.
Properly Classify Employees and Train Managers to Know the Difference
Management also needs to be certain every employee is properly classified as exempt or non-exempt. There are very specific requirements for a position to be exempt from overtime. Putting someone on salary is neither a “perk” nor a way to get out paying overtime. Failure to properly classify employees can lead to major headaches, major fines, and major backpay settlements. Drop us a comment if you'd like more info on this point.
Lastly, managers can only implement a solid program for addressing the time of salaried exempt personnel once they understand what is and is not allowed under FLSA -- so be careful who you listen to, there are a lot of myths flying around out there. Make sure your department managers are trained to know the differences between salary and non-salary. This can end up costing your company quite a bit of money otherwise.
Resources in this Post:
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Posted on Thu, Jul 01, 2010 @ 12:10 PM
As complex as salary employment law is, it can be confusing to get all of your ducks in a row when dealing with the provisions of each law. As an employer, what do you do when your employees are abusing their time off? This post will cover some of these specific situations and the salary employment law associated with them.
A number of our clients have created employment policies specific to the schedules and time off of their salaried employees because the problem of employees abusing time off has become so rampant.
The problem is that management often misinterprets salary employment law and what it means to be a salaried employee as much as the employees do. So let's address the most common arguments:
(Please note that for this exercise we are referring to salaried exempt personnel on a full-time schedule only.)
Top 5 Salary Employment Law Myths
1) "But I'm salaried! You can't make me work 50 hours a week"
Unless you are protected by child labor laws or are in a position that regulates shifts for safety reasons (such as pilots or truck drivers), I can require you to work 12 hours a day 7 days a week. I could, but if I understand anything about human nature and employee retention, I won't.
The point is that there are no federal limits on the number of hours an employer can require a salaried exempt person to work for their weekly wage.
2) "But I'm salaried! You can't make me use PTO for a day off!"
Actually, that's what PTO is for -- it's Paid Time Off, meaning that I pay you even though you don't work. As long as I am following the guidelines of our policy regarding the increments in which PTO is used, I can debit your PTO account for absences, full day or partial day.
If I'm a smart and accommodating manager, I'll recognize when you put in extra time and follow policy to allow you some additional time off without using your PTO. I also won't nitpick regarding the occasional long lunch or afternoon appointment which allows you to cut out early.
However, if you start to nickel and dime about getting 3.7 hours off this week because you worked over 3.7 hours last week, you can bet that our policy will be that PTO will have to cover it.
3) "But I'm salaried! Why should I have to be here from 8-5 each day? You pay me to do the job, not by the hour."
True - the principal behind defining a position as exempt from overtime is that you are paying a person to do the whole job, not necessarily by the time it takes them to do it. However, part of that "whole job" is availability to customers, colleagues and management, which means following the schedule that accommodates those with whom we do business.
Besides, if you tell me that I'm paying you to fulfill a role that I think should take 45 hours a week and you can do it in 25 hours, then I probably need to give you something else to do.
4) "But I'm salaried! You have to pay me for the whole week no matter what."
Salary employment law says this is a PTO issue as well. If you take off two days in the week, I'll use two days of your PTO. However, if you've used all of your PTO and available time off, then the FLSA (Fair Labor Standards Act) will allow me to dock you the two day's pay. The rules about this are very strict.
I can only dock you for full days absences in which you completed no work, and only if you initiated the absence. If you're confused, please feel free to Contact Us regarding FLSA.
Check out this bit of salary employment law on the Department of Labor's website as well.
5) "But I'm salaried! You have to give me comp time for the extra time I put in last week."
Comp time is for hourly non-exempt personnel only, and those not in private industry. Might I give you a more flexible schedule this week or an extra day over the holiday weekend because you put in a few late nights to get last week's project done? If I'm an accommodating manager I might.
However if you tell me that I have to and that I owe it to you then I might be a little disinclined to offer you a reward. For more information on Handling Comp Time in Kentucky, please refer to our whitepaper.
This post is getting a bit long winded, so we'll pick it up next time with the solutions to these problems. Do you have issues like these in your workplace? Feel free to consult any of the resources in this article or Contact Us for assistance.
Resources in this Post:
Comp Time in Kentucky
Policy Development
Compensation Consulting
FLSA Fact Sheet
Fair Labor Standards Act
Contact Us
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Use our blog as a resource - http://integrityhr.com/blog
Stay on top of of your organization by subscribing to our blog via email or RSS to the left. If you would like to Contact Us about any of the concepts in the above blog posting please call 502.753.0970.
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